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Global demand for equipment sends encouraging signs for ag economy

An equipment manufacture says global demand for farm machinery is almost at record highs and that could indicate a healthy ag economy.

Matthias Mumme, deputy head of Corporate Communications, with CLAAS says many farmers are implementing modern farming technology that increases production. “Due to high commodity prices, farmers in Europe and Germany had good income from the past harvest season. The demand the investment level are still high.

He tells Brownfield that’s partly surprising because there were several challenges for the ag industry. “Like high energy prices, high prices fertilizer, seed and so one.  But, prices are already declining from record-high levels that we saw a month ago.”

But, Mumme says, the outlook for 2023 isn’t as good. “We will see stable demand for farm machinery, but not at that record level.

He says demand has been strong in North and South America, China, South Africa and Australia.